The Monetary Policy Committee (MPC), consisting of three central bank members and an equal number of external members, voted unanimously to cut the repurchase or repo rate by 25 basis points to 6 per cent. It had reduced rates by an equal measure in February—the first cut since May 2020.
decline by 25 bps. The move lowers borrowing costs to the lowest level since November 2022, amid easing inflation and a fall in oil prices. The RBI changed its policy stance to “accommodative” from “neutral”, indicating the possibility of more rate cuts in future, Governor Sanjay Malhotra said while announcing the MPC decisions.
The rate cut came on a day when the full 26 per cent additional tariffs on Indian goods exported to the US were supposed to come into effect. The US tariffs exacerbate uncertainties, with some economists predicting a 20-40 basis point drag on Indian GDP growth in the current fiscal year that started on April 1.
